- Don’t expect to buy at the bottom
Don’t overestimate your level and think you can buy at the bottom of the market. In fact, even if the market hits its lowest point, you may be afraid to buy.
Therefore, it is a good attitude to maintain a normal mind, and it is not necessary to buy the lowest point.
- Long-term rising funds are not afraid to buy at the top of the mountain
Another concern that everyone is worried about is buying at the top of the mountain. But in fact, if a good fund rises for a long time, even if it is bought at a short-term high, as long as it is held for a long time, it can eventually be profitable.
- Fund scheduled investment
So for a good fund, timing to buy is not that important. But suddenly you buy a fund across the board, and with the short-term price fluctuations, it may be difficult for you to hold it. So there is a better way is: fund fixed investment.
The so-called fund fixed investment is an investment method to purchase funds by setting the purchase date (such as every Monday, a certain day of each month) . Fixed investments help balance income, and the process of slowly adding positions can lead to a better investing experience.
Fixed investment is very suitable for people with a small amount of capital and a stable monthly salary. After the monthly income arrives, we will make fixed investments. If you stick to it for a long time, you are likely to get a good profit.
- Valuation: sell a little when the valuation is high, buy more when the valuation is low
If you want to find an indicator to judge whether the market is overvalued or undervalued, then one of the most important indicators is valuation, or PE (price-earnings ratio). The formula for calculating the price-earnings ratio is: the company’s market value divided by the company’s most recent year’s net profit.
Of course, for different industries, the market valuation center is different. For example, banks are recognized by the market as an industry with limited future growth potential, so market valuations are relatively low. Usually within 10. As a comparison in the technology industry, the price-earnings ratio can be between 60-100.